Binance coin is the native cryptocurrency of the largest centralized crypto exchange by trading volume. The cryptocurrency is primarily used to pay for trading and non-trading services on the platform and has “BNB” as its ticker symbol.
What Is Binance Coin?
Binance, the largest centralized cryptocurrency exchange in the world, has an average trading volume of about 60 billion dollars a day.
Binance coin, or BNB, originally ran on the ERC20 token standard that powers most Ethereum-based cryptocurrencies but has changed this aspect of its nature after becoming Binance’s native cryptocurrency.
Although BNB was launched via an initial coin offering of 100 million tokens in 2017, it had a total supply capped at 200 million tokens.
However, the amount of BNB coins in circulation has greatly reduced because every quarter, Binance uses one-fifth of its profits to purchase more BNB and put it through a process known as burning.
Burning refers to sending a certain part of a cryptocurrency’s supply to a “burn address” where they remain forever inaccessible. Doing this to the total supply of a cryptocurrency can help raise the price of its circulating supply.
This is because the relationship between supply and demand states that the less amount of an asset in circulation, the greater its price (assuming its demand remains constant).
Binance reportedly burns hundreds of millions of dollars worth of BNB every quarter to combat the effects of inflation and the devaluation of BNB tokens that follow.
Binance’s burns of the BNB tokens are expected to stop when the cryptocurrency’s circulating supply reaches 50% of what it was on launch.
BNB News Updates
In October, BNB suffered one of the biggest hacks when a hacker convinced the smart contract-enabled Binance blockchain (the Binance Smart Chain or BSC) to mint 200 million tokens and send them over in two separate 100 BNB transactions via artificial withdrawal proofs.
Technically, none of Binance’s users lost any funds because the stolen coins simply didn’t exist before the security exploit. However, Binance still lost over $100 million due to the hack.
Binance is also helping to burn LUNC tokens and reduce the supply in the same way it conducts its burns every quarter. Binance has started collecting the trading fees from LUNC spot and margin trades, buying back some LUNC tokens, and now sending them to the LUNC burn address.
BNB Price Analysis
In terms of price, BNB is one of the most stable cryptocurrencies on the market. So far, the cryptocurrency has been ranging between the $260 and the $280 zone over the last few days, as illustrated below on the 4-hour chart.
As illustrated above, the price action of BNB has broken above the 20 and 50-period moving averages (red and green) and is now trying to break above the 100-period moving average (blue line).
If BNB breaks above this line, a retest of the $275 zone can be expected. However, if the price of BNB gets rejected at this level, it is likely to reverse and hit the $265 zone.
As illustrated above, the price of BNB has been in a somewhat symmetrical triangle over the last few weeks.
Judging by this, BNB can consolidate further, testing the top resistance and the bottom support around the $270 zone for the next few days until the bulls or bears decide to wrestle control of the market out of the other’s hands.
Binance Coin Price Prediction 2022
In 2021, BNB rose more than 15 times from what it was at the beginning of the year but then lost the greater part of its gains at the end of the year, after the current crypto winter began.
After hitting a high of $655 in late 2021, BNB has lost a large part of its value and is now worth about $270 after a 60% dip. However, BNB seems more bullish over the long term than other assets.
It can reclaim its former highs if BNB doesn’t go further down in a huge dip.
BNB appears to be forming a potential cup and handle on the daily and weekly timeframe and may follow the trajectory illustrated above over the coming months.
It is important to remember that price movements like these do not happen overnight and may not even happen until early 2023.
BNB Coin Price Prediction 2023
Binance coin has a bright future ahead of it. Binance, the parent company behind BNB, continues to burn more and more of these tokens every quarter, contributing to its bullishness in the foreseeable future.
Especially with the next bitcoin halving expected to happen between 2023 and 2024, BNB is likely to reclaim and surpass its $655 high in 2023.
Overall, BNB is bullish as far as next year is concerned.
Disclaimer: Voice of crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.
